Gold is seeing a rally in the wake of a big miss to the downside in today’s closely-watched U.S. jobs report. Heavy short covering in the futures market and perceived bargain buying in the cash market are featured.
Comex gold for December delivery was last up $19.90 at $1,133.30 an ounce.
December Comex silver was last up $0.3659 at $14.875 an ounce.
This morning’s September U.S. jobs report showed the key non-farm employment figure up just 142,000. Analysts expected the jobs figure to be up 200,000.
However, the big miss to the downside falls into the camp of those policy makers who want the central bank to postpone the increase until next year on a U.S. rate hike. That was also great news for the raw commodity market bulls, including the precious metals.
The U.S. dollar index sold off sharply, being last down 0.72% at 95.493, and U.S. Treasuries rallied on the U.S. jobs data. U.S. stock indexes declined on the news.
In overnight news, producer prices in the euro area were 0.8% lower in August from July and down 2.6%, year-on-year. The declines were more than economists expected and added to the growing concerns over price deflation in the European Union.
The European Central Bank is now under renewed pressure to implement further monetary policy easing measures, at a time when the U.S. is leaning to tighten its monetary policy.
The Euro currency was sharply higher, however, with EUR/USD last trading at 1.1300, up 0.96%.
Russian air strikes in Syria late this week are an added element to an already unstable Middle East region, boosting oil prices, however.
Other U.S. economic data due for release Friday includes the ISM New York business report, and manufacturers’ shipments and inventories.
Credit: mql5.com
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